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European Commission - Press release

Capital Markets Union: Commission welcomes political agreement on new rules to help consumers save for retirement

Brussels, 13 February 2019

The Commission welcomes the political agreement reached by the European Parliament and Member States on the proposal for a pan-European personal pension product (PEPP). Helping to channel more savings to long-term investments in the EU, this is an important milestone for the Capital Markets Union.

The agreement on the new rules, formally backed today by EU Permanent Representatives, will provide savers with more choice when putting money aside for old age, and will allow them to adapt their retirement savings to their needs, thereby contributing to addressing the pensions' gap in the EU. Savers will also benefit from greater competition which should be reflected in the price of products. Providers will be able to sell the product anywhere in the EU under a common set of rules which will guarantee strong investor protection.

Commission Vice-President Valdis  Dombrovskis, responsible for Financial Stability, Financial Services and Capital Markets Union, said: ”Thanks to the agreement on a Pan-European personal Pension Product, EU citizens will have more choice to save for their retirement, while enjoying strong consumer protection. Personal pension providers will be able to sell the PEPP across the EU with one single registration, thereby channelling savings towards long-term investments. This in turn will lead to boosting jobs and growth in the EU. We regret that the portability of the PEPP and the role of EIOPA were weakened, but this agreement is an importantfirst step towards building a true pan-European market for personal pension products.

Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness said: "The agreement achieved by the European Parliament and the Council on PEPP is a major milestone on the road to addressing pension gaps and demographic challenges and a major achievement in completing Capital Markets Union. It will benefit consumers and providers with a strong framework for personal pensions through a new product with strong consumer protection and enhanced cross-border competition."

The pan-European personal pension product, one of the key measures of the Commission's Action Plan to strengthen the Capital Markets Union, will be a voluntary scheme for saving for retirement, to be offered by a broad range of financial providers across the EU. It will complement existing public and occupational pension systems, alongside existing national private pension schemes.

The PEPP will offer consumers more choice, the benefit of greater competition, enhanced transparency and flexibility in product options. PEPP providers will benefit from a real single market for the PEPP and from facilitated intra-EU distribution (through standardised product features), which will allow them pooling assets and creating economies of scale. Mobile citizens will be able to continue contributing to the same product, wherever their residence in the European Union. At the same time, PEPP will help channel savings towards capital markets and benefit investment and growth in the EU.

Next Steps 

Following today's approval by EU Permanent Representatives, the new Regulation has to be formally adopted by the European Parliament and the Council before it can enter into force.


The June 2017 Commission proposal on PEPP is part of the Commission's Action Plan to strengthen the Capital Markets Union (CMU) of September 2015, the Commission's project to create a single market for capital in the EU. The PEPP supports the goal of the CMU, which is to create the right conditions to unlock funding so that it can flow from Europe's savers to Europe's businesses.

Currently, only 27% of Europeans between 25 and 59 years old have enrolled themselves in a pension product. PEPP would contribute to unlocking this vast potential and boost investment in the European Union's economy.

More information


Commission proposal for a regulation on a pan-European personal pension product (PEPP)


Press contacts:

General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email

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